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Dr. Pete--What an amazing article! Thank you! WRT the two formats you put forth, we might also take into account that G has to maintain the coconut juice fountain. If I think about this from the PPC cash flow side, here are thoughts on the two different formats:

1) Virgin America-- As a user, I would not click the top PPC because there is so much targeted, valuable info in the answer box, KG , and organic with site links. It's sort of like the Star Trek computer becomes their own worst enemy. ;-). What do you think?

2) LEED-- I totally see myself clicking on an Ad with a little yellow flag that is integrated in the organic SERPs. And furthermore, if PPC keeps adding Ad extensions with call to action for reviews, discounts, etc , I am absolutely clicking on the paid extension. My eye would be drawn to the yellow....and then a specific call to action.

Lastly, do you think G would ever put PPC in the KG or an answer box? Thanks!

Thanks for the detailed explanation. I am not only paying attention, I am obsessed . One item of interest I wanted to share is a Google WMT support page on structured data. Scroll down to the bottom of this page,Google Structured Data instructions

After listing the various structured data types, the word 'recommended' appears next to microdata. That would mean preferred to me. Am I misinterpreting this? I just recently discovered the political warfare that goes on between microdata and microformat communities, with some peeps saying that microdata and schema are dying on the vine.

Dr Pete--Thank you for your insights! Is there any correlation of KG with type of structured data used by the website? Just wondering if the use of Microdata, RDFa, or Microformats makes a difference to KG rich snippet display? Thx in advance for any response.